Investing in indices involves buying shares of an index fund or exchange-traded fund (ETF) that tracks the performance of a specific market index, such as the S&P 500, NASDAQ-100, or FTSE 100. An index represents a group of stocks selected to reflect the overall performance of a market segment or economy.
Investing in indices offers a balanced approach to building wealth, combining the benefits of diversification, lower costs, and consistent market returns. It is an effective strategy for investors seeking steady growth with reduced complexity and risk.
